Identification of counterfeit and/or diverted products has several issues. Identification of counterfeit items requires tracking and logging of the objects being tracked. The objects need an indicia, referred to here as a tag, the uniquely identifies the object. Object may include packages that include multiple items, as well as the individual items in the packages. The individual items may consist of almost anything, from pharmaceuticals such as bottles or other types of containers, clothing such as designer clothes and shoes, documents like passports, etc. The tags typically consist of a permanent number or other identifier that cannot be changed. These may be printed on the article or possibly even entered on a radio-frequency ID tag (RFID) that cannot be changed or corrupted.
Once tagged, the object's identifier is entered into a database that is accessible by the shipper and receiver. Typically, this consists of a networked, centralized database. Once shipped from the initiating facility, where the tagging occurred, the recipient will need to read the tag and check it against the database. This allows the recipient to verify the authenticity of validity of the tagged item.
If an item shows up as being counterfeit, the recipient has to update the database to provide the information on the counterfeit item. This transaction typically occurs on paper or through an RFID reader at the time of the identification. If it were not done then, the information may be lost or inaccurate with regard to the time and date.
In some instances, the counterfeit item may not be detected, if the tag was replicated with enough accuracy. The recipient may not know that the object tag undergoing verification is attached to a cheaper, lower quality version of the original object that may have been substituted for the original during a theft of diversion of products. Similarly, the recipient has no way of knowing if the product, even if authenticated, was diverted or somehow arrived at the recipient without having undergone inspection or tally at customs houses or tax authorities.